Rapeseed-Mustard seed Product Note
Table of Contents
CHAPTER 1 - TRADING PARAMETERS............................................................................................... 3
Authority .............................................................................................................................................. 3
Unit of Trading ..................................................................................................................................... 3
Months Traded In ................................................................................................................................ 3
Tick Size .............................................................................................................................................. 3
Basis Price .......................................................................................................................................... 3
Unit for Price Quotation ....................................................................................................................... 3
Hours of Trading ................................................................................................................................. 3
Last Day of Trading ............................................................................................................................. 3
Mark to Market .................................................................................................................................... 3
Position limits ...................................................................................................................................... 3
Margin Requirements .......................................................................................................................... 4
Pre-Expiry Margin ............................................................................................................................... 4
Additional/Special Margin .................................................................................................................... 4
Concentration Margin .......................................................................................................................... 4
Delivery Margin ................................................................................................................................... 4
Penalty for default ............................................................................................................................... 4
Arbitration ............................................................................................................................................ 5
Compliance of Laws ............................................................................................................................ 5
CHAPTER 2 - DELIVERY PROCEDURES ............................................................................................ 6
Unit of Delivery .................................................................................................................................... 6
Delivery Size ....................................................................................................................................... 6
Delivery Requests ............................................................................................................................... 6
Delivery Allocation ............................................................................................................................... 6
Actual Delivery .................................................................................................................................... 6
Approved Warehouse ......................................................................................................................... 6
Description of Commodity ................................................................................................................... 7
Quality Standards ................................................................................................................................ 7
Packaging............................................................................................................................................ 7
Standard Allowances .......................................................................................................................... 7
Weight ................................................................................................................................................. 7
Good/ Bad delivery Norms .................................................................................................................. 7
Rapeseed-Mustard seed Sampling ..................................................................................................... 7
Moisture adjusted weight .................................................................................................................... 8
Empanelled Assayer ......................................................................................................................... 13
Testing Procedure ............................................................................................................................. 13
Quality Testing Report/ Assayer Certificate ...................................................................................... 13
Validity period .................................................................................................................................... 13
1 / 28
The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in
force from time to time and be read therewith.
Rapeseed-Mustard seed Product Note
Electronic transfer ............................................................................................................................. 14
Charges ............................................................................................................................................. 14
Duties & levies .................................................................................................................................. 14
Stamp Duty........................................................................................................................................ 14
Taxes................................................................................................................................................. 15
Premium/ Discount ............................................................................................................................ 15
CHAPTER 3 - CLEARING AND SETTLEMENT ................................................................................... 18
Daily Settlement ................................................................................................................................ 18
Daily Settlement Prices ..................................................................................................................... 18
Final Settlement Prices ..................................................................................................................... 18
Spot Prices ........................................................................................................................................ 18
Dissemination of Spot Prices ............................................................................................................ 18
Pay in and Pay out for Daily Settlement ........................................................................................... 18
Pay in and Pay out for final physical settlement ............................................................................... 19
Tender Date -T .................................................................................................................................. 19
Expiry Date ........................................................................................................................................ 19
Early Pay-in of Commodities ............................................................................................................. 19
Supplementary Settlement for Taxes ................................................................................................ 20
Completion of Settlement on the Exchange Platform ....................................................................... 20
Exhibit 1- Contract Specifications of Rapeseed-Mustard Seed ............................................................ 21
Exhibit 2 - Warehouse & Assayer Details ............................................................................................. 26
Exhibit 3 - Good / Bad delivery norms .................................................................................................. 27
Exhibit 4 - Specimen of Rapeseed-Mustard seed Testing Report ........................................................ 28
2 / 28
The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in
force from time to time and be read therewith.
Rapeseed-Mustard seed Product Note
CHAPTER 1 - TRADING PARAMETERS
Authority
Trading in Rapeseed-Mustard Seed (RMSEED) Futures contracts may be conducted under such
terms and conditions as specified in the Rules, Byelaws and Regulations of the Exchange and as per
the circulars and notifications issued by the Exchange thereunder or the Securities Exchange Board
of India (SEBI) from time to time. The approval for futures trading in Rapeseed-Mustard Seed
(RMSEED) Futures contract is attached as Exhibit 1.
Unit of Trading
The unit of trading shall be 10 MT. Bids and offers may be accepted in lots of 10 MT or in multiples
thereof.
Months Traded In
Trading in Rapeseed-Mustard seed futures is applicable to all contracts and may be conducted in the
months as specified by the Exchange from time to time.
Tick Size
The tick size of the price of Rapeseed-Mustard seed shall be Rs.1/Basis Price
The basis price of Rapeseed-Mustard seed shall be Ex-warehouse Jaipur, exclusive of Sales
taxes/VAT.
Unit for Price Quotation
The unit of price quotation for Rapeseed-Mustard seed shall be in Rupees per Quintal. The basis for
Rapeseed-Mustard seed traded as Rapeseed-Mustard seed is Ex-warehouse Jaipur, exclusive of
sales taxes/VAT.
Hours of Trading
The hours of trading for futures in Rapeseed-Mustard seed shall be as follows:
As notified by the Exchange from time to time, currently

Mondays through Fridays – 10.00 a.m. to 05.00 p.m.
Or as determined by the Exchange from time to time. All timings are as per Indian Standard Timings
(IST)
Last Day of Trading
Last day of trading shall be 20th day of the delivery month, if 20th day of the delivery month happens to
be a holiday, a Saturday, or a Sunday then the due date shall be the immediately preceding trading
day of the Exchange.
Mark to Market
The outstanding positions in futures contract in Rapeseed-Mustard seed would be marked to market
daily based on the Daily Settlement Price (DSP) as determined by the Exchange.
Position limits
Limits on open positions for aggregate as well as near month will be across all contracts and
all Exchanges.
Member-wise: 3,00,000 MT or 15% of market wide open interest in the commodity, whichever is
higher
Client-wise: 30,000 MT
3 / 28
The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in
force from time to time and be read therewith.
Rapeseed-Mustard seed Product Note
Bona fide hedger clients may seek exemption as per approved Hedge Policy of the Exchange notified
vide Circular No. NCDEX/CLEARING-019/2016/246 dated September 28, 2016.
For near month contracts:
The following limits would be applicable from 1st of every month in which the contract is due to expire.
If 1st happens to be a non-trading day, the near month limits would start from the next trading day.
Member-wise: 75,000 MT or one-fourth of the member’s overall position limit in that commodity,
whichever is higher.
Client-wise: 7,500 MT
Margin Requirements
NCDEX will use Value at Risk (VaR) based margin calculated at 99% confidence interval for two day
time horizon. NCDEX reserves the right to change, reduce or levy any additional margins including
any markup margin.
For further details, participants can refer to circular no. NCDEX/RISK-039/2016/258 dated September
28, 2016.
Pre-Expiry Margin
There will be an additional margin imposed for the last 11 trading days, including the expiry day of the
Rapeseed-Mustard seed contract. The additional margin will be added to the normal extreme loss
margin and will be increased by 1.50% every day for the last 11 trading days including expiry day of
the contract.
Additional/Special Margin
In case of unidirectional price movement/ increased volatility, an additional/ special margin at such
other percentage, as deemed fit by the Regulator/ Exchange, may be imposed on the buy and the sell
side or on either of the buy or sell sides in respect of all outstanding positions. Reduction/ removal of
such additional/ special margins shall be at the discretion of the Regulator/ Exchange.
Concentration Margin
The Exchange shall levy Concentration Margin, when the overall market wide Open Interest (OI) of a
commodity exceeds the specified Threshold Limit of Open Interest (OI) for that commodity.
For details, participants can refer to circular nos. NCDEX/RISK-015/2016/085 dated April 18, 2016
and NCDEX/RISK-039/2016/258 dated September 28, 2016. The Threshold Limit at present is
2,29,000 MT. The Threshold Limits, slabs and applicable margins are subject to change and
participants are requested to refer to relevant Exchange circulars issued from time to time.
Delivery Margin
In case of positions materializing into physical delivery, delivery margins will be charged for each
commodity to mitigate the risks arising thereof. The Delivery Margin will be 25% on the long and short
positions marked for delivery till the pay-in is completed by the member.
For further details, participants can refer to circular no. NCDEX/RISK-041/2016/266 dated October 03,
2016.
Penalty for default
The penalty structure for failure to meet delivery obligations by the sellers is as follows:
Total amount of penalty = 3.0 % of Settlement price + replacement cost (difference between
settlement price and average of three highest of the last spot prices of 5 succeeding days after the
commodity pay-out date, if the average price so determined is higher than settlement price, else this
component will be zero.)
4 / 28
The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in
force from time to time and be read therewith.
Rapeseed-Mustard seed Product Note
The norms for apportionment of the 3.0 % penalty collected as mentioned above shall be as follows:
a) 1.75 % of Settlement Price shall be deposited in the Settlement Guarantee Fund of the Exchange
b) 0.25 % of Settlement Price shall be retained by the Exchange towards administrative expenses.
c) 1 % of Settlement Price + replacement cost shall go to the Buyer who was entitled to receive
delivery.
Buyers’ defaults are not permitted. The amount due from the buyers shall be recovered from the
buyer as Pay in shortage together with prescribed charges. Exchange shall have right to sell the
goods on account of such Buyer to recover the dues and if the sale proceeds are insufficient, the
Buyer would be liable to pay the balance.
A seller who has got requisite stocks in the Exchange approved warehouses and / or has marked an
intention during staggered delivery period is not allowed to default and any such delivery default by
seller would be viewed seriously and the Exchange shall take suitable penal / disciplinary action
against such members over and above the prescribed penalty for delivery defaults.
For further details, participants can refer to circular no. NCDEX/CLEARING-020/2016/247 dated
September 28, 2016.
Arbitration
Disputes between the members of the Exchange inter-se and between members and constituents,
arising out of or pertaining to trades done on NCDEX shall be settled through arbitration. The
arbitration proceedings and appointment of arbitrators shall be as governed by the Bye-laws and
Regulations of the Exchange.
Compliance of Laws
It is hereby clarified that it is the sole obligation and responsibility of the Members and market
participants to ensure that apart from the approved quality standards stipulated by the Exchange, the
commodity deposited / traded / delivered through the approved warehouses of Exchange either on
their own or on behalf of them by any third party acting on behalf of the Market
Participants/Constituents is in due compliance with the applicable regulations laid down by authorities
like Food Safety Standard Authority of India(FSSAI), AGMARK, BIS, Orders under Packaging and
Labelling etc., as also other State Central laws and authorities issuing such regulations in this behalf
from time to time, including but not limited to compliance of provisions and rates relating to Sales Tax,
Value Added Tax, APMC Tax, Mandi Tax, LBT, Octroi, Excise duty, Stamp duty, etc. as applicable
from time to time on the underlying commodity of any contract offered for deposit / trading / delivery
and the Exchange shall not be responsible or liable on account of any non-compliance thereof.
5 / 28
The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in
force from time to time and be read therewith.
Rapeseed-Mustard seed Product Note
CHAPTER 2 - DELIVERY PROCEDURES
Unit of Delivery
The unit of delivery for Rapeseed-Mustard seed shall be 10 MT.
Delivery Size
Delivery is to be offered and accepted in lots of 10 MT Gross or multiples thereof. A quantity variation
of +/- 2% is permitted as per contract specification.
Delivery Requests
The procedure for Rapeseed-Mustard seed delivery is based on the contract specifications as per
Exhibit I. All the open positions shall have to be compulsorily delivered either by giving delivery or
taking delivery as the case may be. That is, “upon expiry of the contracts, any seller with open
position shall give delivery of the commodity. The corresponding buyer with open position as
matched by the process put in place by the Exchange shall be bound to settle by taking
physical delivery. In the event of default by seller to give delivery, such defaulting seller will be
liable to penalty as may be prescribed by the Exchange from time to time”.
The penalty structure for failure to meet delivery obligations will be as per circular no.
NCDEX/CLEARING-020/2016/247 dated September 28, 2016.
The delivery request for RM Seed contracts will be on staggered basis where tender period would
start on the 11th of every month in which the contract is due to expire. In case 11th happens to be a
Saturday, a Sunday or a holiday at the Exchange, the tender period would start from the next working
day. During the Tender period, if any delivery is tendered by seller, the corresponding buyer having
open position and matched as per process put in place by the Exchange, shall be bound to settle by
taking delivery from the delivery centre where the seller has delivered same.
The Buyers and the Sellers need to give their location preference through Web NCFE system
provided by the Exchange. If the Sellers fail to give the location preference then the allocation to the
extent of his open position will be allocated to the base location.
Delivery Allocation
The Exchange would compile the delivery requests received from members on the last trading day, as
specified in Chapter 1 above. The buyers / sellers who have to receive / give delivery would be
notified on the same day after the close of trading hours. Delivery of Rapeseed-Mustard seed is to be
accepted by buyers at the Approved warehouse/s where the seller affects delivery in accordance with
the contract specifications.
Actual Delivery
Where Rapeseed-Mustard seed is sold for delivery in a specified month of a futures contract, the
seller must have requisite electronic credit of such Rapeseed-Mustard seed holding in his Clearing
Member’s Pool Account before the scheduled date of pay in. On settlement day the buyer’s Clearing
Member’s Pool Account would be credited with the said delivery quantity on pay out. The Clearing
Member is expected to transfer the same to the buyer’s Comtrack account. However, the buyer must
take actual physical delivery of Rapeseed-Mustard seed before expiry of the validity date as indicated
in the quality test report/ Assayer’s Certificate of the Assayer or get the same revalidated.
Approved Warehouse
NCDEX has approved warehouses for receipt and delivery of Rapeseed-Mustard seed. RapeseedMustard seed will only be received at and delivered from the NCDEX Approved warehouse. The
details of the NCDEX Approved warehouses are as per Exhibit 2.
The Rapeseed-Mustard seed received at the NCDEX Approved warehouse will be tested and certified
by NCDEX Approved Assayer before acceptance as good delivery in the warehouse. Likewise,
Rapeseed-Mustard seed delivered to buyers will be from the Approved warehouse only.
6 / 28
The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in
force from time to time and be read therewith.
Rapeseed-Mustard seed Product Note
Description of Commodity
Mustard (Rai, Sarson) whole means the dried, clean mature seeds of one or more of the plants of
Brassica alba. (L), Brassica compestris L.var, dichotoma (Kali Sarson). The product shall be free from
the seeds of Argemone Maxicana L, any other harmful substances and added colouring matter.
Quality Standards
The contract quality for delivery of Rapeseed-Mustard seed futures contracts made under NCDEX
Regulations shall be Rapeseed-Mustard seed conforming to the quality specification indicated in the
contract. No lower grade/ quality shall be accepted in satisfaction of futures contracts for delivery
except as and to the extent provided in the contract specifications. Delivery of higher grade would be
accepted with premium.
Packaging
Rapeseed-Mustard seed should be delivered in 81/86 Kg. Bags on a gross weight basis with a
variation of +/- 2 % in new, sound and unmended A-Twill bags.
Rapeseed-Mustard seed can also be delivered in 51 Kg. Bags on a gross weight basis with a variation
of +/- 2 % in clean, dry, sound, and unmended B-Twill bags.
Bags should be such that there is no spillage. No poultry or cattle feed bags will be allowed. The bags
should not have any markings other than the manufactures name. Bags have to be used straight,
reversing of bags is not permitted.
Standard Allowances
Standard allowance deducted per validation of quality on account of sampling and spillage for the
goods deposited will be as given in the table.
Standard Allowance
Fresh Deposit
0.20%
Revalidation
Nil
Withdrawal
Nil
Weight
The quantity of Rapeseed-Mustard seed received and/ or delivered at the NCDEX Approved
warehouse would be determined/ calculated by the weighbridge/ weigh scale of the Approved
warehouse and the quantity so determined would be final and binding on all parties concerned. The
gross weight of the bag will be 51/81/86 Kg.
Good/ Bad delivery Norms
Rapeseed-Mustard seed delivery into NCDEX Approved warehouse would constitute good delivery or
bad delivery based on the good/ bad delivery norms as per Exhibit 3. The list contained in Exhibit 3
is only illustrative and not exhaustive. NCDEX would from time to time review and update the good/
bad delivery norms retaining the trade/ industry practices.
Rapeseed-Mustard seed Sampling
1. Sampling will be carried on 100% basis from the assaying lot from the bags. Samples are to be
taken from three different places in a bag.
2. 5% of the bags in the assaying lot subject to minimum 5 and maximum 10 bags randomly selected
from each assaying lot will be cut open, contents spread on the floor and visually checked for
presence of any material foreign to the commodity like stones, any plastic material or any substance
which is not directly related to the commodity being sampled. Presence of these materials such as
large pieces of pebbles, inferior quality or husk in the middle of bag, mixing of any apparent material
which is not the actual commodity itself, if any will lead to rejection of the lot being sampled.
Further a sample from the bags cut open will be taken and checked for foreign matter. The FM
content in the Assaying report will be entered higher out of the two matter values determined on the
basis of the composite sample taken from the running sample as indicated in para 1 above and the
7 / 28
The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in
force from time to time and be read therewith.
Rapeseed-Mustard seed Product Note
sample collected as per the process indicated in para 2 This will be then divided into 4 parts and
distributed as under.
These samples will be distributed as under:
- One sample to Depositor
- One sample to Warehouse service provider
- One sample for Analysis by assayer
- One sample for record with assayer
Moisture adjusted weight
Depositors whose goods are having moisture above the basis point will get electronic credit for the
quantity brought less the standard deduction and further with reduction in weight by discount for
moisture as defined in the contract specifications and product note. The weight after deducting
standard deduction and moisture discount (by weight) will be credited to the depositors COMTRACK
CMSP a/c by warehouse service provider. It may be clarified here that the lot being deposited should
remain a deliverable lot even after deduction of standard allowance at the time of fresh deposit and
reduction due to moisture being higher than the basis moisture as illustrated below:
Weighbridge
net weight at
the time of
deposit
Standard
allowance
Moisture ( basis
and maximum as
per contract
specifications )
Actual
moisture at
the time of
fresh
deposits
Weight of lot
for credit
into
beneficiary
account
Good / Bad
delivery
Case - I
10 MT
0.2 %
(fresh
deposits )
5 % and 6.5 %
5.50%
9.93 MT
deliverable
0.2 %
(fresh
deposits )
5 % and 6.5 %
6%
9.88 MT
deliverable
0.2 %
(fresh
deposits )
5 % and 6.5 %
6.50%
9.83 MT
deliverable
Case - II
10 MT
Case - III
10 MT
Warehouse has to deliver entire withdrawn quantity provided the lifting is done by EDD and the
outbound moisture level is at basis point or below: Since the buyer will be buying the goods at basis
moisture level after application of MAW at the time of deposit, if at the time of delivery out, the moisture
level is higher than the basis moisture levels, the WSP has to also deliver the buyer the difference
quantity proportionate to the higher moisture content.
Weight at
Weighbridge
during fresh
deposits
100 MT
5%
5.5%
0.2%
0.5%
99.3 MT
100 MT
5%
6%
Outbound
Moisture
0.2%
1%
100MT
5%
100MT
5%
4 % ( lower
than basis )
5 % ( at basis )
98.8 MT
Quantity to be
delivered by
WSP to Buyer
98.8 MT
100MT
5%
Basis
moisture
Level
Inbound
moisture
results
5.5% ( higher
than basis )
Standard
allowance
MAW
Credit to the
beneficiary
98.8 MT
98.8 MT + 0.5 %
as discount for
8 / 28
The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in
force from time to time and be read therewith.
Rapeseed-Mustard seed Product Note
100MT
5%
6 % ( higher
than basis )
100MT
5%
6.5 % ( higher
than basis )
moisture is
provided on 1:1
basis in the
contract
specifications.
98.8 MT + 1 %
as discount for
moisture is
provided on 1:1
basis in the
contract
specifications.
98.8 MT + 1.5 %
as discount for
moisture is
provided on 1:1
basis in the
contract
specifications
Moisture Adjusted Weight (MAW) Matrix:
Rapeseed – Mustard Seed
Moisture
Upto 5%
%
Deduction
in weight
0
5-5.010
-0.01
5.011-5.020
-0.02
5.021-5.030
-0.03
5.031-5.040
-0.04
5.041-5.050
-0.05
5.051-5.060
-0.06
5.061-5.070
-0.07
5.071-5.080
-0.08
5.081-5.090
-0.09
5.091-5.100
-0.1
5.101-5.110
-0.11
5.111-5.120
-0.12
5.121-5.130
-0.13
5.131-5.140
-0.14
5.141-5.150
-0.15
5.151-5.160
-0.16
5.161-5.170
-0.17
5.171-5.180
-0.18
5.181-5.190
-0.19
5.191-5.200
-0.2
5.201-5.210
-0.21
9 / 28
The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in
force from time to time and be read therewith.
Rapeseed-Mustard seed Product Note
Moisture
%
Deduction
in weight
5.211-5.220
-0.22
5.221-5.230
-0.23
5.231-5.240
-0.24
5.241-5.250
-0.25
5.251-5.260
-0.26
5.261-5.270
-0.27
5.271-5.280
-0.28
5.281-5.290
-0.29
5.291-5.300
-0.3
5.301-5.310
-0.31
5.311-5.320
-0.32
5.321-5.330
-0.33
5.331-5.340
-0.34
5.341-5.350
-0.35
5.351-5.360
-0.36
5.361-5.370
-0.37
5.371-5.380
-0.38
5.381-5.390
-0.39
5.391-5.400
-0.4
5.401-5.410
-0.41
5.411-5.420
-0.42
5.421-5.430
-0.43
5.431-5.440
-0.44
5.441-5.450
-0.45
5.451-5.460
-0.46
5.461-5.470
-0.47
5.471-5.480
-0.48
5.481-5.490
-0.49
5.491-5.500
-0.5
5.501-5.510
-0.51
5.511-5.520
-0.52
5.521-5.530
-0.53
5.531-5.540
-0.54
5.541-5.550
-0.55
5.551-5.560
-0.56
5.561-5.570
-0.57
5.571-5.580
-0.58
5.581-5.590
-0.59
10 / 28
The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in
force from time to time and be read therewith.
Rapeseed-Mustard seed Product Note
Moisture
%
Deduction
in weight
5.591-5.600
-0.6
5.601-5.610
-0.61
5.611-5.620
-0.62
5.621-5.630
-0.63
5.631-5.640
-0.64
5.641-5.650
-0.65
5.651-5.660
-0.66
5.661-5.670
-0.67
5.671-5.680
-0.68
5.681-5.690
-0.69
5.691-5.700
-0.7
5.701-5.710
-0.71
5.711-5.720
-0.72
5.721-5.730
-0.73
5.731-5.740
-0.74
5.741-5.750
-0.75
5.751-5.760
-0.76
5.761-5.770
-0.77
5.771-5.780
-0.78
5.781-5.790
-0.79
5.791-5.800
-0.8
5.801-5.810
-0.81
5.811-5.820
-0.82
5.821-5.830
-0.83
5.831-5.840
-0.84
5.841-5.850
-0.85
5.851-5.860
-0.86
5.861-5.870
-0.87
5.871-5.880
-0.88
5.881-5.890
-0.89
5.891-5.900
-0.9
5.901-5.910
-0.91
5.911-5.920
-0.92
5.921-5.930
-0.93
5.931-5.940
-0.94
5.941-5.950
-0.95
5.951-5.960
-0.96
5.961-5.970
-0.97
11 / 28
The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in
force from time to time and be read therewith.
Rapeseed-Mustard seed Product Note
Moisture
%
Deduction
in weight
5.971-5.980
-0.98
5.981-5.990
-0.99
5.991-6.000
-1
6.001-6.010
-1.01
6.011-6.020
-1.02
6.021-6.030
-1.03
6.031-6.040
-1.04
6.041-6.050
-1.05
6.051-6.060
-1.06
6.061-6.070
-1.07
6.071-6.080
-1.08
6.081-6.090
-1.09
6.091-6.100
-1.1
6.101-6.110
-1.11
6.111-6.120
-1.12
6.121-6.130
-1.13
6.131-6.140
-1.14
6.141-6.150
-1.15
6.151-6.160
-1.16
6.161-6.170
-1.17
6.171-6.180
-1.18
6.181-6.190
-1.19
6.191-6.200
-1.2
6.201-6.210
-1.21
6.211-6.220
-1.22
6.221-6.230
-1.23
6.231-6.240
-1.24
6.241-6.250
-1.25
6.251-6.260
-1.26
6.261-6.270
-1.27
6.271-6.280
-1.28
6.281-6.290
-1.29
6.291-6.300
-1.3
6.301-6.310
-1.31
6.311-6.320
-1.32
6.321-6.330
-1.33
6.331-6.340
-1.34
6.341-6.350
-1.35
12 / 28
The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in
force from time to time and be read therewith.
Rapeseed-Mustard seed Product Note
%
Deduction
in weight
Moisture
6.351-6.360
-1.36
6.361-6.370
-1.37
6.371-6.380
-1.38
6.381-6.390
-1.39
6.391-6.400
-1.4
6.401-6.410
-1.41
6.411-6.420
-1.42
6.421-6.430
-1.43
6.431-6.440
-1.44
6.441-6.450
-1.45
6.451-6.460
-1.46
6.461-6.470
-1.47
6.471-6.480
-1.48
6.481-6.490
-1.49
6.491-6.500
-1.5
Empanelled Assayer
NCDEX has empanelled Assayer for quality testing and certification of Rapeseed-Mustard seed
received at the Approved warehouse. The quality testing and certification of Rapeseed-Mustard seed
will be undertaken only by the empanelled Assayer as appointed by the Warehouse Service Provider.
The assayer details of each warehouse are given in the Exhibit 2 alongside the warehouses.
Testing Procedure
To test foreign matter and non edible seeds, physical tests are conducted. For FFA and Oil, test is
done by NIR machine duly calibrated by the Soxhlet’s extraction apparatus. Moisture test is done by
NIR duly calibrated by the oven dry method.
Quality Testing Report/ Assayer Certificate
Testing and quality certificate issued by Assayer on the samples drawn from Rapeseed-Mustard seed
delivered at Approved warehouse in Jaipur, , Alwar, Bikaner, Jodhpur, Kota, Sri Ganganagar and at
such other locations announced by the Exchange from time to time shall be acceptable and binding
on all parties. Each delivery of Rapeseed-Mustard seed at the warehouse must be accompanied by a
quality testing report/ certificate from NCDEX approved Assayer in the format indicated in Exhibit 4.
Validity period
The validity period for Rapeseed-Mustard is as per the table appended below.
Months of
Deposit /Date of
entry &
completion of
assaying by
warehouse in
system
(Jan -dec)*
January
February
Expiry period
from the date of
Fresh Deposit
(no. of months)
1
-
Validity period
at the time of
fresh deposit
(no of months)
1
-
How many
times
revalidations
allowed
0
-
Validity Period
of first
revalidation
(no. of months)
0
-
13 / 28
The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in
force from time to time and be read therewith.
Rapeseed-Mustard seed Product Note
March
6
6
0
0
April
6
6
0
0
May
6
6
0
0
June
6
6
0
0
July
6
6
0
0
August
6
6
0
0
September
5
5
0
0
October
4
4
0
0
November
3
3
0
0
December
2
2
0
0
*20th of previous month to 19th of the current month as mentioned in the table above
The stock of RM Seed deposited in the Exchange Approved warehouses shall necessarily be
removed after the Exchange Deliverable Date (EDD) as indicated above and continuation of the
storage beyond EDD shall be entirely a private arrangement between the Warehouse and the
depositor/beneficiary holder. The Exchange shall not be responsible in any manner whatsoever for
those stocks which have not been received by any buyer through an immediate preceding settlement
on the Exchange platform and for those stocks which have crossed the EDD.
Electronic transfer
Any buyer or seller receiving and or effecting Rapeseed-Mustard seed delivery would have to open a
Comtrack account with an NCDEX empanelled Comtrack Participant (CP) to record the holdings of
the Rapeseed-Mustard seed stock in electronic form. On settlement, the buyer’s account with the CP
would be credited with the quantity of Rapeseed-Mustard seed received and the corresponding
seller’s account would be debited. The Buyer wanting to take physical delivery of the RapeseedMustard seed holding has to make a request in prescribed form to his CP with whom Comtrack
account has been opened. The CP would route the request to the warehouse for issue of the physical
commodity i.e. Rapeseed-Mustard seed to the buyer and debit his account, thus reducing the
electronic balance to the extent of units of Rapeseed-Mustard seed so physically withdrawn.
Charges
All charges and costs payable at the Approved warehouse towards delivery of Rapeseed-Mustard
Seed including sampling, grading, weighing, handling charges, storage etc. from the date of receipt
into Approved warehouse upto date of pay in & settlement shall be paid by the seller.
No refund for warehouse charges paid by the seller for full validity period shall be given to the seller or
buyer for delivery earlier than the validity period.
All charges and costs associated & including storage, handling etc. after the pay out shall be borne by
the buyer. Warehouse storage charges will be charged to the member/ client by the respective
Comtrack Participant.
The Assayer charges for testing and quality certification should be paid to the Assayer directly at the
delivery location either by cash/ cheque/ demand draft.
Duties & levies
All duties, levies etc. up to the point of sale will have to be fully borne by the seller and shall be paid to
the concerned authority. All related documentation should be completed before delivery of RapeseedMustard seed into the NCDEX Approved warehouse.
Stamp Duty
Stamp duty is payable on all contract notes issued as may be applicable in the State from where the
contract note is issued or State in which such contract note is received by the client.
14 / 28
The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in
force from time to time and be read therewith.
Rapeseed-Mustard seed Product Note
Taxes
Service tax
Service tax as applicable would be payable by the members of Commodity Exchanges on the gross
amount charged by them from their clients on account of dealing in commodities.
Sales Tax/ VAT
Local taxes/ VAT wherever applicable is to be paid by the seller to the sales tax/ VAT authorities on all
contracts resulting in delivery. Accordingly the buyer will have to pay the taxes/ VAT to the seller at
the time of settlement of the contract. Members and/ or their constituents requiring to receive or
deliver Rapeseed-Mustard seed should register themselves with the relevant tax/ VAT authorities of
the place where the delivery is proposed to be received/ given. In the event of sales tax exemption,
such exemption certificate should be submitted before settlement of the obligation. There will be no
exemptions on account of resale or second sale in VAT regime.
Premium/ Discount
Premium & Discount on the Rapeseed-Mustard seed delivered will be provided by the Exchange on
the basis of quality specifications:
The Exchange will communicate the premium/ discounts amount applicable. Such amount will be
adjusted to the members account through the supplementary settlement.
Quality delivery with variation shall be acceptable with premium/ discount as under:
However, the location wise premium/discount shall be applicable which would be announced by the
Exchange from time to time. The decision of the Exchange in determination of premium / discount is
final and binding on all market participants.
Ready Reckoner for grades
Oil Content
Foreign Matter
Bet 38.00% to 38.25% =
1 Upto 0.50%
=
Bet 38.26% to 38.50% =
2 Bet 0.51% - 1.00% =
Bet 38.51% to 38.75% =
3 Bet 1.01% - 1.50% =
Bet 38.76% to 39.00% =
4
Bet 39.01% to 39.25% =
5
Bet 39.26% to 39.50% =
6
Bet 39.51% to 39.75% =
7
Bet 39.76% to 40.00% =
8
Bet 40.01% to 40.25% =
9
Bet 40.26% to 40.50% = 10
Bet 40.51% to 40.75% = 11
Bet 40.76% to 41.00% = 12
Bet 41.01% to 41.25% = 13
Bet 41.26% to 41.50% = 14
Bet 41.51% to 41.75% = 15
Bet 41.76% to 41.99% = 16
At 42.00 %
= 17
Bet 42.01% to 42.25% = 18
Bet 42.26% to 42.50% = 19
Bet 42.51% to 42.75% = 20
Bet 42.76% to 43.00% = 21
Bet 43.01% to 43.25% = 22
Bet 43.26% and above = 23
1
2
3
Ready Reckoner for grades
15 / 28
The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in
force from time to time and be read therewith.
Rapeseed-Mustard seed Product Note
Oil Content
1 =
-9.52
2 =
-8.93
3 =
-8.33
4 =
-7.74
5 =
-7.14
6 =
-6.55
7 =
-5.95
8 =
-5.36
9 =
-4.76
10 =
-4.17
11 =
-3.57
12 =
-2.98
13 =
-2.38
14 =
-1.79
15 =
-1.19
16 =
-0.60
17 =
0
18 =
0.60
19 =
1.19
20 =
1.79
21 =
2.38
22 =
2.98
23 =
3.57
Foreign Matter
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
2
P/D
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-0.50
1
2
3
Foreign Matter
=
0.00
=
-0.50
=
-1.00
Oil Content
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
1
P/D
Grade
-9.52
-8.93
-8.33
-7.74
-7.14
-6.55
-5.95
-5.36
-4.76
-4.17
-3.57
-2.98
-2.38
-1.79
-1.19
-0.60
0.00
0.60
1.19
1.79
2.38
2.98
3.57
-9.52
RMSEED11
RMSEED12
RMSEED13
RMSEED14
RMSEED15
RMSEED16
RMSEED17
RMSEED18
RMSEED19
RMSEED110
RMSEED111
RMSEED112
RMSEED113
RMSEED114
RMSEED115
RMSEED116
RMSEED117
RMSEED118
RMSEED119
RMSEED120
RMSEED121
RMSEED122
RMSEED123
RMSEED21
P/D Value
-9.52
-8.93
-8.33
-7.74
-7.14
-6.55
-5.95
-5.36
-4.76
-4.17
-3.57
-2.98
-2.38
-1.79
-1.19
-0.60
0.00
0.60
1.19
1.79
2.38
2.98
3.57
-10.02
16 / 28
The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in
force from time to time and be read therewith.
Rapeseed-Mustard seed Product Note
Foreign Matter
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
P/D
-0.50
-0.50
-0.50
-0.50
-0.50
-0.50
-0.50
-0.50
-0.50
-0.50
-0.50
-0.50
-0.50
-0.50
-0.50
-0.50
-0.50
-0.50
-0.50
-0.50
-0.50
-0.50
-1.00
-1.00
-1.00
-1.00
-1.00
-1.00
-1.00
-1.00
-1.00
-1.00
-1.00
-1.00
-1.00
-1.00
-1.00
-1.00
-1.00
-1.00
-1.00
-1.00
-1.00
-1.00
-1.00
Oil Content
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
P/D
Grade
-8.93
-8.33
-7.74
-7.14
-6.55
-5.95
-5.36
-4.76
-4.17
-3.57
-2.98
-2.38
-1.79
-1.19
-0.60
0.00
0.60
1.19
1.79
2.38
2.98
3.57
-9.52
-8.93
-8.33
-7.74
-7.14
-6.55
-5.95
-5.36
-4.76
-4.17
-3.57
-2.98
-2.38
-1.79
-1.19
-0.60
0.00
0.60
1.19
1.79
2.38
2.98
3.57
RMSEED22
RMSEED23
RMSEED24
RMSEED25
RMSEED26
RMSEED27
RMSEED28
RMSEED29
RMSEED210
RMSEED211
RMSEED212
RMSEED213
RMSEED214
RMSEED215
RMSEED216
RMSEED217
RMSEED218
RMSEED219
RMSEED220
RMSEED221
RMSEED222
RMSEED223
RMSEED31
RMSEED32
RMSEED33
RMSEED34
RMSEED35
RMSEED36
RMSEED37
RMSEED38
RMSEED39
RMSEED310
RMSEED311
RMSEED312
RMSEED313
RMSEED314
RMSEED315
RMSEED316
RMSEED317
RMSEED318
RMSEED319
RMSEED320
RMSEED321
RMSEED322
RMSEED323
P/D Value
-9.43
-8.83
-8.24
-7.64
-7.05
-6.45
-5.86
-5.26
-4.67
-4.07
-3.48
-2.88
-2.29
-1.69
-1.10
-0.50
0.10
0.69
1.29
1.88
2.48
3.07
-10.52
-9.93
-9.33
-8.74
-8.14
-7.55
-6.95
-6.36
-5.76
-5.17
-4.57
-3.98
-3.38
-2.79
-2.19
-1.60
-1.00
-0.40
0.19
0.79
1.38
1.98
2.57
17 / 28
The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in
force from time to time and be read therewith.
Rapeseed-Mustard seed Product Note
CHAPTER 3 - CLEARING AND SETTLEMENT
Daily Settlement
All open positions of a futures contract would be settled daily based on the Daily Settlement Price
(DSP).
Daily Settlement Prices
The Daily Settlement Price (DSP) will be as disseminated by the Exchange at the end of every trading
day. The DSP will be reckoned for marking to market all open positions.
Final Settlement Prices
The Final Settlement Price (FSP) will be determined by the Exchange upon maturity of the contract.
All open positions on the expiry day of the contract would result in compulsory delivery.
FSP shall be arrived at by taking the simple average of the last polled spot prices of the last three
trading days viz., E0 (expiry day), E-1 and E-2. In the event the spot price for any one or both of E- 1
and E-2 is not available; the simple average of the last polled spot price of E0, E-1, E-2 and E-3,
whichever available, shall be taken as FSP. Thus, the FSP under various scenarios of non-availability
of polled spot prices shall be as under:
Scenario
1
2
3
4
5
6
7
FSP shall be
simple average of
last polled spot
E‐1 E‐2 E‐3
prices on:
Yes Yes Yes/No E0, E‐1, E‐2
Yes No Yes
E0, E‐1, E‐3
No Yes Yes
E0, E‐2, E‐3
No No Yes
E0, E‐3
Yes No No
E0, E‐1
No Yes No
E0, E‐2
No No No
E0
Polled spot price
availability on
E0
Yes
Yes
Yes
Yes
Yes
Yes
Yes
The Settlement Price for any delivery allocation during staggered period (i.e. up to one day prior to
expiry) would be the last available spot price displayed by the Exchange for the respective contract.
Spot Prices
NCDEX will announce/ disseminate spot prices for Rapeseed-Mustard seed relating to the designated
delivery center and specified grade/ quality parameters determined through the process of polling a
set of market participants representing different segments of the value chain.
The polled prices shall be input to a normalizing algorithm (like ‘bootstrapping’ technique) to arrive at
a representative, unbiased and clean ‘benchmark’ spot price for Rapeseed-Mustard seed. The
security of data and randomness of polling process will ensure transparency and correctness of
prices. The Exchange has absolute right to modify the process of determination of spot prices at any
time without giving any notice to the market.
Dissemination of Spot Prices
Spot prices for Rapeseed-Mustard seed will be disseminated on daily basis.
Pay in and Pay out for Daily Settlement
The table below illustrates timings for pay in and pay out in case of daily settlement. The buyer clients
would have to deposit requisite funds with their respective Clearing Member before “pay in”.
All fund debits and credits for the Member would be done in the Member’s Settlement Account with
the Clearing bank.
18 / 28
The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in
force from time to time and be read therewith.
Rapeseed-Mustard seed Product Note
Time (T+1)
Activity
On or before 09.30 hrs
PAYIN – Debit paying member a/c for funds
After 13.00 hrs
PAYOUT – Credit receiving member a/c for funds
Pay in and Pay out for final physical settlement
The table below illustrates timings for pay in and pay out in case of positions marked for physical
settlement. The buyers / sellers would have to deposit requisite funds / Rapeseed-Mustard seed with
their respective Clearing member before “pay in”.
Pay in and Pay out for Final Settlement in case of physical deliveries
Time (T/E+2)
Activity
PAYIN
On or before 12.00 hrs
- Debit Buyer Member Settlement a/c for funds
- Debit Seller Member’s CM Pool Account for
Rapeseed-Mustard seed
PAYOUT
After 14.30 hrs
- Credit Seller Member Settlement a/c for funds
- Credit Buyer Member’s CM Pool Account for
Rapeseed-Mustard seed
Tender Date -T
Tender period:
The delivery request for RM Seed contracts will be on staggered basis where tender period would
start on the 11th of every month in which the contract is due to expire. In case 11th happens to be a
Saturday, a Sunday or a holiday at the Exchange, the tender period would start from the next working
day.
Pay-in and Pay-out: On a T+2 basis. If the tender date is T then, pay-in and pay-out would happen on
T + 2 day. If such a T + 2 day happens to be a Saturday, a Sunday or a holiday at the Exchange,
clearing banks or any of the service providers, Pay-in and Pay-out would be effected on the next
working day.
Expiry Date
20th day of the delivery month. If 20th happens to be a holiday, a Saturday or a Sunday then the due
date shall be the immediately preceding trading day of the Exchange.
The settlement of contract would be by a staggered system of Pay-in and Pay-out including the last
pay-in and pay-out which would be the Final Settlement of the contract.
Additionally the supplemental settlement for Rapeseed-Mustard seed futures contracts for premium /
discount adjustments relating to quality of Rapeseed-Mustard seed delivered, actual quantity
delivered and close out for shortages, will also be conducted on the same day. Clearing Members are
required to maintain adequate fund balances in their respective accounts.
Pay in and Pay out for supplemental settlement
Time (T/E +2)
Activity
On or before 15.00 hours
PAY IN - Debit Member Settlement a/c for funds
After 15.00 hours
PAY OUT – Credit Member Settlement a/c for funds
Early Pay-in of Commodities
Members can make an early payin of commodities to get exemption from the applicable pre-expiry and
delivery margin and the same would be considered for the purpose of adjustment against their
19 / 28
The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in
force from time to time and be read therewith.
Rapeseed-Mustard seed Product Note
settlement obligations. The member shall mark EPI using the NCFE web application provided by the
Exchange. The user guide for the same is available for download under:NCFE Menu: Downloads-> Download files-> Under User Manual folder-> EPI user guide
In case where a member fails to give delivery after claiming early pay-in, a penalty of 5% of
settlement price of respective settlement number for which early pay-in was marked shall be levied.
For further details, refer circular no. NCDEX/CLEARING-022/2016/268 dated October 05, 2016.
Supplementary Settlement for Taxes
The Exchange will conduct a separate supplementary settlement, as illustrated below, three days
after normal pay out for completion of tax transactions.
In order to facilitate issue of invoice to right parties, the buyer Clearing Members are required to give
the buyer client details to the Exchange latest by 15.00 hrs on T/E+3 day failing which the buying
member is considered as the end buyer and accordingly invoice is issued in his/their name.
The Seller Clearing Members are required to give the seller client details to the exchange latest by
15.00 hrs on T/E + 4 day.
The amounts due to the above differences will be debited / credited to Member’s clearing bank
account similar to normal settlement.
Pay in and Pay out for Taxes
Time (T/E + 5)
Activity
On or before 11.00 hours
PAY IN: Debit Buyer Member Settlement a/c for funds.
After 11.00 hours
PAY OUT: Credit Seller Member Settlement a/c for funds
For further clarification and detailed procedure on sales tax settlement, participants can refer to
circular number NCDEX/CLEARING-001/2008/002 issued on January 04, 2008.
Completion of Settlement on the Exchange Platform
The settlement obligations on the Exchange platform shall be deemed to be completed as per the
provisions of the Bye-laws, Rules and Regulations of the Exchange and the circulars issued by the
Exchange thereunder from time to time.
20 / 28
The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in
force from time to time and be read therewith.
Rapeseed-Mustard seed Product Note
Exhibit 1- Contract Specifications of Rapeseed-Mustard Seed
(Applicable for contracts expiring in the months of April 2017 and thereafter)
(Updated on March 23, 2017)
Type of contract
Futures Contract
Trading system
NCDEX Trading System
Name of commodity
Rapeseed-Mustard seed
Ticker symbol
RMSEED
Basis
Ex-warehouse Jaipur, exclusive of sales taxes/VAT
Unit of trading
10 MT
Delivery unit
10 MT
Maximum Order Size
500 MT
Quotation/base value
Rs. per Quintal
Tick size
Re. 1
Moisture content
5% (basis)
Oil Content (at 5% moisture content
42% (basis)
level):
Quality Specification
FFA%
1.0 (max)
Foreign Matter
0.50% (basis)
Damaged or Shriveled or discolored
0.75% (max)
seeds
Insect damaged matter
Insect damaged matter should
be within 0.75%.
Quantity variation
+/- 2%
Delivery centre
Jaipur (up to the radius of 50 km from the municipal limits)
Alwar (Rajasthan), Kota (Rajasthan), Sri Ganganagar (Rajasthan),
Bikaner (Rajasthan) and Jodhpur (Rajasthan) (At all centers, up to the
Additional delivery centres
radius of 50 km from the municipal limits) (Premium/discount for all
centres will be announced at the time of launching a contract)
Trading hours
As notified by the Exchange from time to time,
Mondays through Fridays: 10:00 a. m. to 05:00p.m.
The Exchange may vary the above timing with due notice.
currently:-
Delivery Logic
Compulsory Delivery
Opening of contracts
Trading in any contract month will open on the 1st day of the month. If
the 1st day happens to be a non-trading day, contracts would open on
the next trading day
Tender Period
Tender Date –T
Tender Period: The tender period shall start on 11th of every month in
which the contract is due to expire. In case 11th happens to be a
Saturday, a Sunday or a holiday at the Exchange, the tender period
would start from the next working day.
Pay-in and Pay-out:
On a T+2 basis. If the tender date is T, then pay-in and pay-out would
happen on T+2 day (excluding Saturday). If such a T+2 day happens to
21 / 28
The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in
force from time to time and be read therewith.
Rapeseed-Mustard seed Product Note
be a Saturday, a Sunday or a holiday at the Exchange, clearing banks
or any of the service providers, pay-in and pay-out would be effected on
the next working day.
Closing of contract
Clearing and settlement of contracts will commence with the
commencement of Tender Period by compulsory delivery of each open
position tendered by the seller on T + 2 to the corresponding buyer
matched by the process put in place by the Exchange.
Upon the expiry of the contract all the outstanding open position shall
result in compulsory delivery.
Due date/Expiry date
Expiry date of the contract:
20th day of the delivery month. If 20th happens to be a holiday, a
Saturday or a Sunday then the due date shall be the immediately
preceding trading day of the Exchange, which is other than a Saturday.
The settlement of contract would be by a staggered system of Pay-in
and Pay-out including the Last Pay- in and Pay-out which would be the
Final Settlement of the contract.
Delivery Specification
Upon expiry of the contracts all the outstanding open positions shall
result in compulsory delivery.
During the Tender period, if any delivery is tendered by seller, the
corresponding buyer having open position and matched as per process
put in place by the Exchange, shall be bound to settle by taking delivery
on T + 2 day from the delivery centre where the seller has delivered
same.
The penalty structure for failure to meet delivery obligations will be as
per circular no. NCDEX/CLEARING-020/2016/247 dated September
28, 2016.
No. of active contracts
As per launch calendar
Price Limits
Daily price fluctuation limit is (+/-) 3%. Once the 3% limit is reached,
then after a period of 15 minutes this limit shall be increased further by
1%. The trading shall be permitted during the 15 minutes period within
the 3% limit. After the DPL is enhanced, trades shall be permitted
throughout the day within the enhanced total DPL of 4%.
The DPL on the launch (first) day of new contract shall be as per the
circular no. NCDEX/RISK-034/2016/209 dated September 08, 2016.
Position limits
Limits on open positions for aggregate as well as near month will
be across all contracts and all exchanges.
Member-wise: 3,00,000 MT or 15% of market wide open interest in
the commodity, whichever is higher
Client-wise: 30,000 MT
Bona fide hedger clients may seek exemption as per approved Hedge
Policy of the Exchange notified vide Circular No. NCDEX/CLEARING019/2016/246 dated September 28, 2016.
For near month contracts:
The following limits would be applicable from 1st of every month in
which the contract is due to expire. If 1st happens to be a non-trading
day, the near month limits would start from the next trading day.
Member-wise: 75,000 MT or one-fourth of the member’s overall
position limit in that commodity, whichever is higher
Client-wise: 7,500 MT
Quality delivery with variation
premium/discount as under:
shall
be
acceptable
with
Premium/Discount
Moisture:
• 6.5% maximum with moisture adjusted weight
22 / 28
The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in
force from time to time and be read therewith.
Rapeseed-Mustard seed Product Note
Oil Content:
 More than 42% accepted at 1:1 premium or part there of
 From 42% to 38% accepted at 1:1 discount or part there of
 Below 38% rejected
Foreign matter:
 From 0.50% to 1.5% accepted at 1:1 discount or part there of
 Above 1.5% rejected
Free from non-edible seeds such as Mahuas, Castor, Neem, Taramira,
Argemone seeds.
Should be free from any foul odor.
Final Settlement Price
FSP shall be arrived at by taking the simple average of the last polled
spot prices of the last three trading days viz., E0 (expiry day), E-1 and
E-2. In the event the spot price for any one or both of E- 1 and E-2 is
not available; the simple average of the last polled spot price of E0, E-1,
E-2 and E-3, whichever available, shall be taken as FSP. Thus, the
FSP under various scenarios of non-availability of polled spot prices
shall be as under:
FSP shall be
Polled spot price
simple average of
Scenario
availability on
last polled spot
E0
E‐1 E‐2 E‐3
prices on:
1
Yes Yes Yes Yes/No E0, E‐1, E‐2
2
Yes Yes No Yes
E0, E‐1, E‐3
3
Yes No Yes Yes
E0, E‐2, E‐3
4
Yes No No Yes
E0, E‐3
5
Yes Yes No No
E0, E‐1
6
Yes No Yes No
E0, E‐2
7
Yes No No No
E0
Minimum Initial margin
4%
Special Margin
In case of unidirectional price movement/ increased volatility, an
additional/ special margin at such other percentage, as deemed fit by
the Regulator/ Exchange, may be imposed on the buy and the sell side
or on either of the buy or sell sides in respect of all outstanding
positions. Reduction/ removal of such additional/ special margins shall
be at the discretion of the Regulator/ Exchange.
23 / 28
The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in
force from time to time and be read therewith.
Rapeseed-Mustard seed Product Note
Tolerance limit of RAPESEED MUSTARD SEED
Commodity
Specifications
Moisture content
Basis
5% (basis)
Oil Content (at 5%
42% (basis)
moisture content level)
FFA
1.0% (max)
Foreign Matter
0.50% (basis)
Acceptable quality range as per
contract specification
6.5% maximum
adjusted weight
with
Permissible
Tolerance
moisture
More than 42% accepted at 1:1
premium or part thereof. From 42%
+/-0.50%
to 38% accepted at 1:1 discount or
part thereof. Below 38% rejected
+/-0.50%
From 0.50% to 1.5% accepted at
1:1 discount or part there of
+/-0.10%
Above 1.5% rejected
Damaged or shriveled or
0.75% (max)
discolored seeds
+/-0.25%
Insect Damaged Matter
+/-0.25%
0.75% (max)
Max Tolerance (for all characteristics)
+/- 1.00%
Note: Tolerance limit is applicable only for outbound deliveries. Variation in quality parameters within
the prescribed tolerance limit as above will be treated as good delivery when members/clients lift the
materials from warehouse. These permissible variations shall be based on the parameters found as
per the immediate preceding test certificate given by NCDEX empanelled assayer.
Contract Launch Calendar for Rapeseed Mustard Seed
Contract Launch Month
October 2016
November 2016
December 2016
January 2017
February 2017
March 2017
April 2017
May 2017
June 2017
July 2017
August 2017
Contract Expiry Month
April 2017
May 2017
June 2017
July 2017
No Launch
No Launch
August 2017
September 2017
October 2017
November 2017
December 2017
Members and market participants who enter into buy and sell transactions may please note that they
need to be aware of all the factors that go into the mechanism of trading and clearing, as well as all
provisions of the Exchange's Bye Laws, Rules, Regulations, Product Notes, circulars, directives,
notifications of the Exchange as well as of the Regulators, Governments and other authorities.
It is clarified that it is the sole obligation and responsibility of the Members and market participants to
ensure that apart from the approved quality standards stipulated by the Exchange, the commodity
deposited / traded / delivered through the approved warehouses of Exchange is in due compliance
with the applicable regulations laid down by authorities like Food Safety Standard Authority of
India(FSSAI), AGMARK, BIS, etc. as also other State/Central laws and authorities issuing such
regulations in this behalf from time to time, including but not limited to compliance of provisions and
rates relating to Sales Tax, Value Added Tax, APMC Tax, Mandi Tax, LBT, Octroi, Excise duty, stamp
24 / 28
The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in
force from time to time and be read therewith.
Rapeseed-Mustard seed Product Note
duty, etc. as applicable from time to time on the underlying commodity of any contract offered for
deposit / trading / delivery and the Exchange shall not be responsible or liable on account of any noncompliance thereof.
25 / 28
The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in
force from time to time and be read therewith.
Rapeseed-Mustard seed Product Note
Exhibit 2 - Warehouse & Assayer Details
For information & the updated list of Warehouse & Assayers kindly refer to the NCDEX Web
http://www.ncdex.com/ClearingServices/ClearingServicesOthers.aspx
26 / 28
The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in
force from time to time and be read therewith.
Rapeseed-Mustard seed Product Note
Exhibit 3 - Good / Bad delivery norms
No.
Particulars
Good / Bad delivery
1.
Quality not meeting futures contract specification.
Bad delivery
2.
Delivery at non Approved warehouse.
Bad delivery
3.
Delivery completed but without sampling & testing /
Bad delivery
certification/ expired validity.
4.
Delivery without weight certificate.
5.
Weighed
at
other
than
recognized
Bad delivery
by
Approved
Bad delivery
When sample is not drawn as per sampling norms and not
Bad delivery
warehouse/ weigh bridge/ weigh scale
6.
carried out at the time of unloading
7.
Delivery not as per the packaging specification
Bad delivery
8.
Delivery found contaminated on visual inspection
Bad delivery
27 / 28
The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in
force from time to time and be read therewith.
Rapeseed-Mustard seed Product Note
Exhibit 4 - Specimen of Rapeseed-Mustard seed Testing Report
CERTIFICATE OF QUALITY
Date : _________
Report no.:
NCDEX Member/Client Name :
Commodity
:
Lorry No.
:
Warehouse details:
Lot no.:
QUALITY :
The results of analysis performed by our laboratory of the samples
WH__________________________________________________is stated below :
Test Items
Test method
Specification
collected
by
Test results
The material delivered by the above NCDEX Member is in accordance with the specification
provided bearing grade _____________and valid up to ___________________.
The goods delivered may be accepted / rejected.
Chief Inspector / Authorized Signatory
28 / 28
The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in
force from time to time and be read therewith.